Obama Tax Plan May Require New Strategies

President Obama has unveiled a new tax plan that tax experts say may need new strategies in response.

The president introduced on Jan. 17 a revamp of the tax code that would bump up capital gains and dividends rates to 28 percent, would impose a capital gains tax on beneficiaries for inherited assets that have have appreciated in value and would block contributions in qualified IRAs once balances hit $3.4 million, according to a story on investmentnews.com.

The article says the proposal is unlikely to pass in its current condition, but suggests it shows where legislation could go in the future.

A wealth strategist quoted in the story said that charitable giving, donor-advised funds and charitable remainder trusts will likely be the tools that high-net worth individuals use to counter these new proposals.

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